CREDAI-BANM, RAIGAD Vs. UNION OF INDIA

JUDGEMENT

(1.) By this Writ Petition under Article 226 of the Constitution of India, the Petitioner seeks issuance of a writ of Mandamus to direct the Respondent- Union of India to extend the date of availing deductions by assessees under Sec. 80-IBA of the Income Tax Act, 1961 ('the Act) from 31/3/2022 to 31/3/2023, by taking necessary executive legislative steps as may be required. The Petitioner further seeks issuance of a writ of Mandamus to direct the Respondent to extend the time period for completion of construction projects from five years to seven year under Sec. 90-IBA(2)(b) of the Act.

(2.) It is the Petitioner's case is that the provisions of Sec. 80-IBA of the Act were enacted vide Finance Act, 2016, to provide a tax holiday to the Real Estate Developers, who the petitioner claims to be representing, and such tax holiday was granted to Real Estate Developers-assessees for constructing affordable housing projects that fulfill the conditions contained in the said provisions of law. It is the Petitioner's case that the said provision was amended from time to time and mandates that, to avail tax holiday, developers are requested to complete the construction of a housing project within five years from receipt of building approvals and, such project should have been approved on or before 31/3/2022.

(3.) It is further the Petitioner's case that the provision of Sec. 80-IAC of the Act was also enacted under the Finance Act, 2016 providing incentives to start-up companies for availing deductions provided they were set-up on or after 1/10/2019 and had commenced operations. It is the Petitioner's case that under clause 22 of the Finance Bill, 2022, for the purposes of Sec. 80-IAC, the date of incorporation for start-up companies was extended from 31/3/2022 to 31/3/2023 for availing deductions under those provisions of the Act. Similarly, the Petitioner claims that under clause 26 of the Finance Bill, 2022, the last date for availing deductions by manufacturing and production companies under Sec. 115-BAB of the Act was extended from 31/3/2023 to 31/3/2024, subject to the concerned company being set up on or after 1/10/2019 and having commenced its business operations.